Following the smashing success of the first session, the second sessino kicked off with Nigel from Carbon Disclosure, and it was one f my favorite presentations of the day. this session was a bit theoetical at times, but the three speakers really brought in a lot of insights, data, and experience when speaking to us about what trends in CSR were coming, what people found important, and how companies were reacting.

2nd session

Nigel Topping: Carbon Disclosure Project Topic:Carbon disclosure in the China Supply Chain There are going to be major winners and major loses depending on how firms respond to the issue of carbon CDP funnels information from publicly quoted (stock exchange) into business and investment community. 2400 companies worldwide with (2008 will bring 100 Chinese firms). • Have 77% response rate as investor and corporate awareness has risen, and rates are going up • Finding that N. American companies are starting to pass Europe for awareness and addressing the issues. • This year, there seemed to be a much higher level of awareness to emissions up/ down stream – Scope 3 reporting – full footprint reporting/ awareness • 80% see risks of climate change to business – 82% see opportunity • There is a huge gap in risk awareness and percentage of $$ put to programs Firms are starting to look at supply chain through a carbon lens • A cost that before was intangible, but is becoming more tangible and actionable • Not just about footprint, but also risks in the measure of steps in the chain • Danger: audit fatigue and appearance of bullying - requires standardization Still very early days (last year in U.S. and E.U) but it is spreading fast • Still no blueprint… everyone is boot strapping as they go along. • Wal Mart refused for first 3 years to disclose. 4th round they fully disclosed (2006) by calculating carbon footprint and published 5th round, they are now looking for more engaged support from CDP o Looked at 43 suppliers of household goods o CDP facilitated the disclosure request o Conference at end with Walmart and suppliers in the same room o Lessons:  Make sure there is clarity in organization about the use of the information  Need for capacity building with measurements – need to improve  Small suppliers were better prepared to respond  It is the beginning of a process o Some of the supplies had never thought of their impact on the environment and climate  This recognition had an immediate impact in many cases as suppliers recognized their role, and that there was a competitive advantage in responding. • Jumping into a full disclosure across the entire supply chain is a huge effort, and the emerging practice is looking by product group and lifecycle analysis.. and then move down. o 80/20 Oliver Levy: Dragon Sourcing Topic: Survey Results - Socially Responsible Procurement • Recently conducted a Survey on social responsibility sourcing o French (61%) and Chinese companies (39%) o 83% of total were foreign companies • Procurement is spreading o China is big benefactor (31% have opened in China) o 15% more firms expect to open in China over the next 2 years • There is still a lot of disagreement and confusion of what role firms play in CSR o Employees, health & Security, corp gov rank high o Human rights, philanthropy, fair trade have a bit of controversy • Still a lot of variance in programs o Many firms still do not have programs (44%), and half of them have no plans o Image is still biggest driver, management initiative and customer pressure too. o Less than have supplier specific CSR program, a large part of those that have CSR programs required little or no documentation (only 19% have detailed documents), more than half have no database, and 58% provide no training. o 40% still lack code of compliance o Child labor, health, and human rights are largest “requirements” • There is a lot expected of supplirs, but few provide much assistance, or feel their assistance is very important • Main benefits o Image o Risk anticipation o Better quality o Very few see the profit in it. Michael Zhou: BT China Topic: Collaborative Approach to CSR development throughout the supply chain BT manages 5 billion in procurement spend across 20,000 supliers through 1350 staff through 4 sites (China, India, Brazil, and Hungary). In China • Sourcing new suppliers • Managing existing • Manage supplier risk Ethical Sourcing, and how they evaluate compliance and CSR • Objective is to understand the opportunities and to put forward a model that creates a win win o Look at it as a partnership • Categorize into 3: Vendors, Key suppliers, strategic supplier o Categorized by impact on business and spend o Assessment is perform through questionnaire and visit to identify gaps, and then work through the issues  Focus on 12 elements: overall it is focused on management skill  End of assessment produces gap analysis and score (assessment measures target, benchmark, and actual figures • Evaltuation approach o Two teams: capacity/ capability/ security and CSR o 1:1 inteviews/ worker interviews o Confidentiality o Reporting with feedback o Gap analysis and feedback plan (annual basis) Climate Change • Strategy o Have nearly completed assessment of CO2 emissions that look at entire chain of company (travel, fleet management, data denters) o Look at global scope, and encourage suppliers to measure themselves • Purchasing principals o Have three principals that address climate issues o Supplier has mandatory target to reduce environmental impact of new products • Approach o Reduce own emissions and influence those in the chain o Customer influence through new products (hope to win them over) • The Goal is for 80% reduction of 1996 emissions by 2016 o End of 2007 already achieve 60% Carbon emissions • Currently emitting 1.6m tones of CO2 a day in 1996, currently .6M, and target in 2016 is .3M • Homeworking and Conferencing vs. travel and time in office • BT Transport – promote efficient fuel Renewable Energy • Use of renewables and green energy contracts with power suppliers • Currently saving the equivalent of 300,000 households • Developing wind farms – goal is 25% of UK electricity by 2016 @ cost of 250 million GBP